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SIPP property purchase questionnaire Important notes ■
This form enables us to review a proposed property purchase or transfer.
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Please complete as fully as possible.
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Incomplete information may lead to delays.
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You should also refer to your SIPP Member Handbook and our SIPP - Commercial Property (including land) Guide, copies of which can also be found on our website.
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All sections should be fully completed apart from the following two which are optional depending on the property: • •
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VAT on property/land. This applies only to VATable property/land Scottish properties/land – additional declaration. This is for Scottish properties only.
This document is updated regularly. Please ensure you’re referring to the latest document by visiting our website or contacting your Xafinity SIPP Consultant. Property isn’t an investment option with the SimplySIPP. If you have a SimplySIPP and wish to invest in property, please contact us about moving to the full Xafinity SIPP
SIPP member details SIPP member name Is this a multi-member purchase? If so, please provide the name of each Xafinity SIPP member or third party and their percentage share, together with a copy of any existing "Joint Ownership Agreement" rd
For 3 parties please also provide an address for correspondence
SIPP reference no (if allocated)
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Property/land purchase details (please complete in all cases) (a) Please state the full address (including postcode) of the property or land. Please also provide the Title Number/Land Registry Reference, if known.
Address:
Title Number/Land Registry Reference:
(b) Description of SIPP’s proposed interest in the property (e.g. freehold, leasehold). If leasehold, is there a chain of tenants? If so, please summarise where the SIPP will fit into this and the expiry date of the governing lease. Important ! Any head lease must be amended to incorporate our standard limitation of liability (see Property Guide). You must check that this will be acceptable to all parties involved in this transaction as the purchase cannot proceed without it.
Freehold / Leasehold If Leasehold, please provide a copy of the “Head lease” Is it acceptable to all parties to include limitation of liability? Yes / No
(c) Description of property type (e.g. commercial, industrial, offices). If there is any residential element, please provide details.
(d) Name of solicitor firm to be appointed to act on behalf of your SIPP. If “Non-panel”, please insert address and phone number/email address of solicitor and complete the non-panel solicitor declaration section of the member's resolution in this questionnaire. (e) Name of seller and is the seller “connected” to the member(s)?
Connected: Yes / No
Also, please confirm who currently holds the legal documentation (e.g. title documents, leases, EPC etc) relating to the property, if known.
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(f) Please provide the name, address and telephone number / email address of the seller’s solicitor.
(g) Proposed purchase price and expected rental income.
Purchase price: £ Rental income (p.a.): £
Also, is VAT payable on the purchase price? VAT payable? Yes / No Please also complete the “Financial Summary” in this form. This must detail how the proposed purchase is to be funded. (h) Is the SIPP to “opt to tax”?
Yes / No
If yes, please also complete VAT Details Section of this questionnaire If this is a joint purchase with a third party please provide the name, address and contact details of the accountancy firm that will carry out the joint VAT administration. (i) Is the property to be developed?
Yes / No
If so, please provide full details (under separate cover, if necessary) plus professional costs. Also, will borrowing be needed to fund any of the development costs and if so, from whom? A Joint Contracts Tribunal (JCT) Agreement will be required for any development work (j) Please confirm whether there is an existing lease in place or whether there will be a new lease or if the property is vacant.
Existing tenant / new tenant / vacant possession
If new lease, please complete the lease details section of this questionnaire. If existing tenant, are they a connected party?
Yes / No
If existing tenant, are they VAT registered?
Yes / No
Important ! Any lease must be amended to incorporate our standard limitation of liability (see Property Guide). You must check that this will be acceptable to all parties involved in this transaction as the purchase cannot proceed without it.
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If existing tenant, please provide a copy of the lease. Is it acceptable to all parties to include limitation of liability? Yes / No
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(k) Please confirm who property / land insurance is being arranged with. Normally this will be organised by the SIPP member on behalf of the SIPP and payable by the tenant. This must be in place for the purchase and in the name of “Xafinity Pension Trustees Ltd”.
(l) Where borrowing is required to support the purchase, please provide contact details (name, address and telephone number) for the proposed lender. Also, please confirm the amount to be borrowed and if this has been approved by the lender in principle.
(m) Has an Energy Performance Certificate (EPC) been prepared previously? If so, please provide a copy of this. Unless an exemption applies, it is the seller’s legal responsibility to provide one.
Yes / No
(n) Does the member(s) business / other connected party own adjacent property in their own capacity? (If so, please provide details)
Yes / No
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Reason for exemption:
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Financial summary Please complete in all cases Any purchase of property by a SIPP needs to be financially viable. Please complete the following:
Outgoings Property Purchase Price
£
VAT (if applicable)
£
Fees/Stamp Duty/Disbursements (If unsure, estimate 5% of purchase price)
£
Our “buffer” (minimum of £5,000)
£
Development Costs (if applicable)
£
TOTAL Outgoings
£
Income Existing SIPP funds on deposit
£
Borrowing*
£
Pension Contribution (if applicable)*
£
Surrender of SIPP Assets (if applicable)*
£
Transfers-In (if applicable)*
£
Total Income
£
If the total outgoings exceed the total income, the purchase cannot proceed until there are more SIPP funds. *Please provide brief details relating to contributions, surrenders or transfers-in below. In addition, as the rental income must be at least 125% of any mortgage payments, please confirm that this is the case or otherwise below.
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Lease details (for new leases) (a) Please provide full details of the tenant.
Tenant Name:
If there’s more than one tenant, please provide for each tenant on a separate page. Tenant address (If Registered Office):
a
Company,
If a Company, the Company Number: (b) Is the tenant a “connected party”?
provide
Registration
Yes / No
(c) Please provide full contact details of the solicitor acting on behalf of the tenant and where relevant, any other interested party. (d) Please provide information about the proposed lease.
Rental (per annum): £ Rental payable (e.g. monthly or quarterly): Lease term (in years): Rent review cycle (e.g. 3 or 5 yearly): VAT payable (Yes or No)? Any service charge(s) payable? If so, how much?
(e) Has any rent free period been agreed with the tenant? If yes, please confirm the length of the rent free period to be granted and the reasons for this (e.g. is this a commercial decision based on the current market or has tenant agreed to complete works on the property in return for a rent free period?).
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(f) Have you agreed with the tenant that there should be an option for them to end the lease before the end of the contractual term (i.e. a “Break Clause”)? If yes, please confirm what has been agreed. For instance, at what point in the term can the tenant end the lease early, how much notice must the tenant give to exercise this and is the provision to be exercisable by both the SIPP and tenant?
(g) Have you agreed with the tenant that a rent deposit or guarantee should be provided? If yes, please detail this.
(h) Normally full repairing obligations will be placed with the tenant. If this is not to be the case and something else has been agreed, please provide details.
(i) How often is the property to be decorated internally and externally by the tenant? (j) Is the tenant to be allowed to alter/do any of the following? (indicate ‘Y’/’N’)
Alter internally without consent? Alter externally without consent? Change/install signage without consent?
(k) What is the authorised use of the property? Where it is a shop, what will be sold?
(l) Is the lease to be assignable, with the SIPP’s consent? Please note that no “Assignment of part” can be permitted.
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(m) Is it to be possible for the lease to be underlet, with the SIPP’s consent? Please note that there can be no “under-letting of part”.
(n) Is the lease to be excluded from the renewal provisions of the Landlord and tenant Act 1954 (i.e. the tenant will have no statutory right to a new lease when the lease ends)?. We expect a surveyor to provide an opinion as to whether this is appropriate but we would normally expect underleases to be excluded. NB this applies to property in England and Wales.
Yes / No Please provide surveyor’s opinion
(o) Are there any unusual rights to be granted with the lease? For example, rights of way over adjoining premises or parking rights.
(p) Are there any rights to be reserved over the property in favour of the SIPP relating to other adjoining or neighbouring property? If yes, please detail.
(q) Are there any unusual and specific covenants that the SIPP wants to impose on the tenants? If yes, please detail.
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Property or land “opted to tax (subject to VAT) This information is needed if the property is subject to VAT. Please pass this questionnaire to the vendor (if property sale to SIPP) or trustees of the transferring scheme (if property pension transfer to SIPP), for completion and return to us. Has the property been “opted to tax”? note 1
Yes
No
Is the sale / transfer to be treated as a TOGC? Note 2
Yes
No
Notes: 1. If the property has been “opted to tax” by the vendor / transferring scheme, the SIPP solicitors will require sight of the following documents, so please provide copies as soon as possible. The property purchase / transfer cannot be concluded until these have been received: ■
HM Revenue & Customs acknowledgement of vendor / transferor VAT registration.
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HM Revenue & Customs acknowledgement of the property being “opted to tax” – also known as “Notice of Election for VAT”.
2. It is important that both vendor / transferor and SIPP agree to whether this proposed transaction can be treated as a Transfer of a business as a Going Concern (TOGC). Completion and return of this questionnaire is needed to allow the solicitors acting for the SIPP to reach that agreement (or otherwise).
Vendor / Transferor declaration We declare that the above information provided is true and complete, and enclose copy HMRC acknowledgments of both VAT registration and property “Opted to Tax”. Vendor / Trustee Signature: Vendor / Trustee Name:
Vendor / Trustee Signature: Vendor / Trustee Name:
Vendor / Trustee Signature: Vendor / Trustee Name:
Vendor / Trustee Signature: Vendor / Trustee Name:
Date:
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Solicitor appointment & resolutions Please complete in all cases I/We the undersigned hereby declare ■
All relevant information has been provided.
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I/we understand that I am/we are fully responsible for ALL disbursements, legal fees, valuation fees and any other fees incurred in this matter even if the transaction is not completed, irrespective of the reason, and that these fees must be met from existing SIPP funds. I/We hereby authorise Xafinity to meet any of these fees from the SIPP funds.
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I/we have read the SIPP Commercial Property (including land) Guide and that the information that I/we have provided is true to the best of my/our knowledge.
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I/we authorise Xafinity to instruct legal work on behalf of the SIPP.
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Where the above solicitor is not on the Xafinity panel, I/we confirm:
solicitors to carry out the
1. That I/we understand that Xafinity’s preferred solicitors are 1.1 Bevirs or HCB in England and Wales; 1.2 Harper Macleod or Anderson Strathern in Scotland; or 1.3 Shean Dickson Merrick in Northern Ireland. 2. I/we have decided not to use any of the solicitors named in 1 above to represent the SIPP and wish Xafinity to use …………………………………………….............................................. of………..………………………………………………………………………………………………….. …………………………………………………… in the forthcoming property transaction. 3. On making this decision, I/we accept that this may cause delays during the transaction due to standard agreed processes that Xafinity have in place with their preferred solicitors not being in place with my/our chosen solicitor. 4. I/we accept that Xafinity reserves the right to refer any legal matter that they feel the SIPP needs separate legal advice on to their preferred solicitors and that any costs relating to this will be payable by the SIPP. 5. I/we accept Xafinity’s belief that by not using their preferred solicitor that legal costs will be higher than they would be if their preferred solicitor was used. 6. That I/we authorise Xafinity to instruct and deal with the solicitor shown in 2 above to carry out the legal work on behalf of the SIPP. 7. I/we accept that Xafinity reserve the right to charge for any additional work that they need to carry out that is due to their preferred solicitors not being used. ■
In relation to any property such as an hotel (or similar), which Xafinity confirms at the point of purchase or transfer meets the exemption from being classed as direct investment in Taxable Property, no member or connected person will have the use of the premises or the facilities. I/We
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indemnify Xafinity from any liability should a tax charge result from such an investment or inappropriate use of it by members or connected persons. ■
If the transferring property is subject to VAT, I/we will arrange for the trustees of the transferring arrangement to complete and submit the “SIPP vendor/transferor VAT Questionnaire” with supporting paperwork to Xafinity.
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Where I/we am/are acting on an ‘Execution Only’ basis (i.e. I/we haven’t asked for or received financial advice) I/we will not hold Xafinity liable for any losses resulting from my/our acting without financial advice.
All member(s) must sign this resolution and print their name below. Member’s signature Member’s name
Member’s signature Member’s name
Member’s signature Member’s name
Member’s signature Member’s name
Member’s signature Member’s name
Member’s signature Member’s name
Date of signing
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Solicitor appointment & resolutions For properties in Scotland where panel solicitor being used This Resolution is made by the member(s) being: _________________________ of _____________________________________________________ _________________________ of _____________________________________________________ collectively referred to as “the Members” in relation to ______________________________________ “the Property” The Members authorise Xafinity to instruct appointed solicitor") to carry out the legal work on behalf of the SIPP.
solicitors ("the
Each of the Members resolves on their own behalf and collectively resolves and certifies to XAFINITY SIPP SERVICES LTD (company registration number SC069096) a company whose registered office is at Scotia House, Castle Business Park, Stirling, FK9 4TZ, or its associated companies as Administrator of __________________________________________ (“the Scheme”). 1. I am a member of the Scheme. I will not reach 65 years of age or the selected Pension Date until at least ten years after the contractual completion date. If I am, there is sufficient liquidity, other than this Property, in my arrangements to fund my retirement. 2. I have satisfied myself through my own enquiries and those of my investment advisers that the Property is a viable investment and that I am not entering into this transaction in reliance on anything said by either Xafinity SIPP Services Ltd, or its associated companies, their servants, agents or employees (“XAFINITY”). I further confirm that I have had and continue to have the opportunity to take investment advice and that it is me (along with the other members as appropriate) who has made the decision to purchase the Property. 3. I have signed the XAFINITY (or previously named Administrator) SIPP documentation and have read and fully understand the same and acknowledge that I have been advised of the right to receive legal advice as to the content thereof and taken it if I have deemed it appropriate. 4. I have read the “SIPP Commercial Property (including land) Guide” issued by XAFINITY. 5. We confirm that our Solicitors have explained to us the rules relating to “connected persons” set out in s.839 of the Income and Corporation Taxes Act 1988 and that we have read the relevant section explaining this in the “SIPP Commercial Property (including land) Guide” issued by XAFINITY. 6. I confirm that we have established the Scheme solely for the purpose of providing relevant retirement benefits and that the purchase of the property is merely incidental to that purpose. 7. I confirm that the Property is either subject to an existing tenancy or on completion a lease will be entered into at commercial terms. Each Member declares to XAFINITY on his or her own behalf that: 7.1 No part of the Property is or will be occupied on a purely residential basis save for the exceptions, which are permitted under HMRC rules as appropriate and agreed by XAFINITY.
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7.2 The valuation report carried out on the property by an instructed surveyor has been read and I have noted the contents thereof. In particular, I have noted the valuation and the insurance recommendations. 7.3 XAFINITY recommends that the Property is inspected by a Building Surveyor prior to completion. I acknowledge this and that XAFINITY will not be liable to me in respect of any defects to the Property that may become apparent after completion whether I have had the building surveyed or not. 7.4 Loss of Rent Insurance for three years is required and that unless I notify XAFINITY’s Solicitors to the contrary prior to exchange of contracts, missives or completion of the transaction, I will arrange this at the same time as the buildings insurance. 7.5 Buildings insurance is required in the sum recommended by the Valuer with the interest of XAFINITY and any secured creditor duly noted. Unless I notify XAFINITY’s Solicitors and obtain XAFINITY’s written agreement to the contrary prior to exchange of contracts, missives or completion of the transaction, I will arrange for this to be in place before completion. 8. I confirm that on the basis of this resolution and certificate we irrevocably authorise XAFINITY to: 8.1 Proceed with the purchase of the Property; finalise a contract for sale; enter into a mortgage agreement with the Lender; and to use such funds as are within its control from our SIPP Members’ Funds to complete the purchase. 8.2 To execute the contract, facility letter, mortgage deed and transfer and all other documents relating to the acquisition of the Property as necessary. 8.3 To release the funds to the appointed solicitor upon request upon exchange and completion as required and we further authorise the appointed solicitor to complete the Purchase. 9. I/We declare that: 9.1 The information I have provided is true and complete to the best of my knowledge and belief and that all relevant information has been provided. 9.2 I understand that I am fully responsible for ALL disbursements, legal fees, valuation fees and any other fees incurred in this matter even if the purchase is not completed, irrespective of the reason, and that such fees must be met from existing SIPP funds. 9.3 By signing this Resolution, I authorise XAFINITY to meet the appointed solicitor’s fees and outlays, including registration dues and SDLT, in respect of this purchase from a Scheme bank account. This authority applies in respect to the appointed solicitor’s services on behalf of XAFINITY and the SIPP member(s) as well as any lender who may or may not have appointed the appointed solicitor to act on its behalf in relation to financing any part of the purchase price of the property being acquired. 10. I confirm that all costs and disbursements of the appointed solicitor including (but not limited to) Stamp Duty Land Tax and Land Registry fees shall be paid by me from our SIPP prior to completion. 11. I confirm that in the event of the approval or registration of the Scheme (or the overriding SIPP) being withdrawn I understand that the value of the total funds in the scheme (not just the value of the property) as at the date when the approval is withdrawn may be subject to a tax penalty irrespective of whether the scheme had lost its approval following a deliberate act or whether the act was unintentional.
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For properties being purchased by two or more members, each member must sign this Resolution and Certificate. All signatures must be witnessed. Member’s signature Witness signature Witness name (printed) Witness address
Date of signing
DD/MM/YYYY
Member’s signature Witness signature Witness name (printed) Witness address
Date of signing
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Checklist Have you included......? Please note any comments in the box on the right Please tick as appropriate Y
N
Comments
N/A
Fully completed SIPP property purchase questionnaire Independent survey / valuation (must be dated within 6 months of completion for connected party transaction) Copy of existing lease (if available )
Copy of offer letter from bank for SIPP borrowing (if applicable) Energy Performance Certificate (EPC) Asbestos Survey / Management Plan
Fire Risk Assessment
Copy insurance document (if already in place) or quote
Xafinity SIPP Services Ltd is authorised and regulated by the Financial Conduct Authority. Our FCA Registration Number is 461791. You can check this on the FCA’s website at www.fca.org.uk/register. Xafinity Pension Trustees Ltd (1450089) is registered in England at Phoenix House, 1 Station Hill, Reading RG1 1NB. Xafinity SIPP Services Ltd is registered in Scotland (No 69096) and its registered office is at Scotia House, Castle Business Park, Stirling FK9 4TZ. 135XSP(e) (12/15)
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